Are you planning to launch
a business in Dubai in the coming months? Are you starting to look into the various procedures to complete and do you have many questions about
opening a bank account?
Our firm, specializing in supporting the
formation of companies in Dubai, can help you open a bank account in the United Arab Emirates. In this article, we will explain the main points to remember. But do not forget that if you still have questions, you can contact one of our advisers directly. We are truly here to make all your procedures in the United Arab Emirates easier.
High- or low-risk client: what are the differences?
If you want to
set up a company in Dubai, you will need to open a bank account in the United Arab Emirates. This is strongly recommended, but at the same time, it is a somewhat complex step. Indeed, just because you request
to open an account at a bank in Dubai does not mean that you will receive approval.
Banks in the United Arab Emirates classify clients into 2 categories:
- Low-risk clients
- High-risk clients
If a bank classifies your application as low risk, you should have no difficulty obtaining a bank account for your company. On the other hand, if your application is classified as high risk, you may face a refusal.
Clients are considered high risk if they meet at least one of the following criteria:
- If the company is registered with a poorly regarded registry in the Emirates
- If the main shareholder does not reside in the Emirates
- If the future company's business activity is considered too general or unclear
- If the client has no professional experience and/or an unclear source of funds
- If the client's personal bank statements show a low or negative balance, or one that is inconsistent with the company's future activity
If you do not want to waste time, it is therefore preferable to be classified as a “low-risk client.” It is therefore important to maximize your chances by receiving support from a specialized firm like ours.
How do you open a bank account in Dubai?
To
open a bank account in Dubai, you must attend an in-person appointment. We will help you schedule the appointment and will also accompany you on the day. It is not possible to open a bank account remotely in the United Arab Emirates.
For the appointment to be effective, you will need to gather a certain number of documents. Here are the main supporting documents requested, although others may be required depending on your company's profile:
- A business plan describing your activity in 2 to 3 pages in English. We will provide you with a template to complete, which we will then only need to review before the appointment.
- A detailed CV in English for the shareholders
- Copies of the shareholders' personal bank statements for the last 6 months
- Proof of an existing business or proof of your professional activity: for example, you can provide invoices, contracts, and the bank statements from the last 3 months of an existing company.
In any case, you can provide these supporting documents to the banker later, after the appointment, but the account cannot be opened until the banker has the documents available. This is why it is important to arrive on the day with a complete file.
Which banks do we work with?
We work with several reputable banks in the United Arab Emirates. Their acceptance criteria are not necessarily the same, so we will advise you on the one most likely to accept your application. Although we cannot guarantee that a bank account will be opened, the supporting documents you provide will need to convince the banker.
In any case, we only work with reputable banking institutions that offer high-quality services to their clients. If your application is accepted, it takes between 1 and 2 weeks for the bank account to be opened, depending on the bank.
Contact us if you would like to learn more about the banks we work with or if you have any questions about
the banking sector in Dubai.
